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And theres not going to be any major interventions. As of yet anyway.
http://www.reuters.com/financeMarketReportArticle.jhtml;jsessionid=S3N43VIUNEHFACRBAEKSFFA?type=goldMktRp t
From Reuters:
"GLOBAL MARKETS-Dlr hits new euro low; Nikkei falls, gold jumps
Thu Nov 18, 2004 01:48 AM ET
By Christopher Kaufman
SINGAPORE, Nov 18 (Reuters) - The dollar hit a record low against the euro on Thursday as traders bet officials would not act to stop its slide, sending gold to a fresh 16-year peak and hurting Japanese stocks as a stronger yen weighed on exporters.
An MSCI index of shares elsewhere in Asia, however, hit its highest level in almost five years as technology stocks tracked gains in U.S. shares following strong results from computer maker Hewlett-Packard.
The U.S. currency skidded to an all-time low of around $1.3065 per euro in Tokyo trade and to a 7-1/2-month low of 103.75 yen .
Tokyo's Nikkei average <.N225> slipped as selling of exporters shares outweighed strength in technology stocks The Nikkei fell 0.44 percent to 11,082.42.
MSCI's index of Asian shares outside Japan <.MSICAPJ> rose to its highest level since March 2000, led by its technology component, before paring its gain to around 0.4 percent. MSCI's World Index of stocks <.MSCIWD> held just below a 3-1/2-year high hit on Wednesday.
Honda Motor Co. Ltd. <7267.T>, which makes three quarters of its sales overseas, lost 1.92 percent as the stronger yen threatened to eat into its earnings, while bigger rival Toyota Motor Corp. <7203.T> fell 1.71 percent.
"Selling is piling up on auto and auto parts makers now that the odds appear to be higher that the dollar will fall further towards 100 yen," said Toshiro Iida, manager of equities trading at Mizuho Securities.
"Investors are fleeing from other exporters, like Nintendo, as well," he said. Computer game maker Nintendo <7974.OS> lost 2.01 percent. "
From BBC:
S Korean won jumps against dollar
South Korean flag
The won's gain is largely down to problems surrounding the dollar
South Korea's won has hit a seven year high against the US dollar after the finance ministry said it does not have a target rate for the currency.
The won strengthened 1.1% to 1,069.05 per dollar. It has added 5% this month and analysts expect further gains.
Finance Minister Lee Hun-jai said the government was monitoring the situation and "will take action when necessary".
Concerns about the state of the US economy has seen the dollar weaken against most major global currencies.
Talking point
The slide has come despite US officials making positive noises and saying that the administration of George W Bush supports a strong dollar.
Traders have taken these comments with a pinch of salt, however, pointing to the fact that US growth is more likely to benefit from a weaker currency that helps boost export demand.
"The (South Korean) authorities will not go against the global trend of a weak dollar," said one trader in Seoul. "It's time to get prepared for trading near 1,050."
Finance Minister Mr Lee said that the main criteria for the strength or weakness of the won would be economic fundamentals.
Should traders try to shift the market, however, then its stance will change, he said.
"The government hopes everything goes on appropriately based on supply and demand in the market, but government won't leave it unchecked when the foreign exchange market shows rapid fluctuations due to speculative forces," Mr Lee said."
From CBS MarketWatch :
http://cbs.marketwatch.com/news/stor...E863C4A573%7D&;siteid=mktw
TOKYO (CBS.MW) - The dollar slipped further against the euro and yen on Thursday in Asia, amid growing speculation that nothing will emerge from this weekend's Group of 20 finance meeting to put a floor under the greenback.
The dollar was at 103.83 yen in Asia trade, compared with 104.04 yen late Wednesday in the United States.
The euro tested new record highs, trading at $1.3058, compared with $1.3036 in the United States late Wednesday.
The Group of 20 financial policy makers will gather Friday and Saturday. Foreign exchange rates are expected to be one of the topics discussed at the meetings in Berlin.
But Tokyo strategists said top finance officials are likely to refrain from addressing the dollar in its joint statement.
"G-20 has historically not dealt squarely with the currencies in its communiqué," said Masaki Fukui, vice president of forex division at Mizuho Corporate Bank in Tokyo.
Finance Minister Sadakazu Tanigaki uttered the ministry's usual mantra to reporters Thursday, saying that Japan will take action on unusual currency moves.
When asked about the dollar's fall to below the 104 yen level, Tanigaki said Japan is watching currency moves `"closely," and added, "As I've said before, we will do it when moves are unusual, and there's no change in that" policy, according to Bloomberg News.
Japan's chief cabinet secretary Hiroyuki Hosoda said Thursday that Japan doesn't see a need to intervene in the currency markets to prop up the dollar at around the 104 yen, according to Kyodo News.
The dollar's further drop showed that many investors were betting that the intervention card would remain unplayed.
"Many participants feel that it will be difficult for Japan to intervene in the currency market as European officials are not in a mood to intervene despite voicing caution against the weaker dollar," Fukui said.
On Thursday, the Bank of Japan's nine-member policy board unanimously agreed to leave its monetary policy unchanged, as expected. The central bank also downgraded its assessment of Japan's economy, shadowing the Cabinet Office's move earlier this week.
U.S. trade Wednesday
The dollar dropped to a record low against the euro Wednesday as investors grew doubtful that the weekend meeting would a weekend meeting of top finance officials would produce concerted policy to slow the greenback's dive.
The euro was valued as much as $1.3047 during European trading hours, its richest since the 1999 launch of the shared currency. The peak was achieved as initial dollar selling took out significant options barriers that had been protecting lofty euro and yen levels.
The U.S. currency got little help from mostly dollar-positive U.S. economic data issued Wednesday.
The dollar was off the record low, but remained down 0.6 percent against Europe's shared currency in late North American trading; one euro would buy $1.3036.
The dollar fell 0.3 percent against its British counterpart and was trading at four-month lows, with one pound worth $1.8593. The greenback slid 1.1 percent to 1.1623 Swiss francs, after touching an 8 1/2-year low.
U.S. Treasury Secretary John Snow, traveling in Europe, reiterated Wednesday that a "strong dollar" policy is in the interest of the United States, but analysts said that record U.S. budget and trade deficits are keeping pressure on the dollar.
Snow also reiterated his comment that the market, not government officials, should set currency rates, which bolstered the view in some corners that a coordinated intervention to stem the dollar's decline is unlikely."
http://www.reuters.com/financeMarketReportArticle.jhtml;jsessionid=S3N43VIUNEHFACRBAEKSFFA?type=goldMktRp t
From Reuters:
"GLOBAL MARKETS-Dlr hits new euro low; Nikkei falls, gold jumps
Thu Nov 18, 2004 01:48 AM ET
By Christopher Kaufman
SINGAPORE, Nov 18 (Reuters) - The dollar hit a record low against the euro on Thursday as traders bet officials would not act to stop its slide, sending gold to a fresh 16-year peak and hurting Japanese stocks as a stronger yen weighed on exporters.
An MSCI index of shares elsewhere in Asia, however, hit its highest level in almost five years as technology stocks tracked gains in U.S. shares following strong results from computer maker Hewlett-Packard.
The U.S. currency skidded to an all-time low of around $1.3065 per euro in Tokyo trade and to a 7-1/2-month low of 103.75 yen .
Tokyo's Nikkei average <.N225> slipped as selling of exporters shares outweighed strength in technology stocks The Nikkei fell 0.44 percent to 11,082.42.
MSCI's index of Asian shares outside Japan <.MSICAPJ> rose to its highest level since March 2000, led by its technology component, before paring its gain to around 0.4 percent. MSCI's World Index of stocks <.MSCIWD> held just below a 3-1/2-year high hit on Wednesday.
Honda Motor Co. Ltd. <7267.T>, which makes three quarters of its sales overseas, lost 1.92 percent as the stronger yen threatened to eat into its earnings, while bigger rival Toyota Motor Corp. <7203.T> fell 1.71 percent.
"Selling is piling up on auto and auto parts makers now that the odds appear to be higher that the dollar will fall further towards 100 yen," said Toshiro Iida, manager of equities trading at Mizuho Securities.
"Investors are fleeing from other exporters, like Nintendo, as well," he said. Computer game maker Nintendo <7974.OS> lost 2.01 percent. "
From BBC:
S Korean won jumps against dollar
South Korean flag
The won's gain is largely down to problems surrounding the dollar
South Korea's won has hit a seven year high against the US dollar after the finance ministry said it does not have a target rate for the currency.
The won strengthened 1.1% to 1,069.05 per dollar. It has added 5% this month and analysts expect further gains.
Finance Minister Lee Hun-jai said the government was monitoring the situation and "will take action when necessary".
Concerns about the state of the US economy has seen the dollar weaken against most major global currencies.
Talking point
The slide has come despite US officials making positive noises and saying that the administration of George W Bush supports a strong dollar.
Traders have taken these comments with a pinch of salt, however, pointing to the fact that US growth is more likely to benefit from a weaker currency that helps boost export demand.
"The (South Korean) authorities will not go against the global trend of a weak dollar," said one trader in Seoul. "It's time to get prepared for trading near 1,050."
Finance Minister Mr Lee said that the main criteria for the strength or weakness of the won would be economic fundamentals.
Should traders try to shift the market, however, then its stance will change, he said.
"The government hopes everything goes on appropriately based on supply and demand in the market, but government won't leave it unchecked when the foreign exchange market shows rapid fluctuations due to speculative forces," Mr Lee said."
From CBS MarketWatch :
http://cbs.marketwatch.com/news/stor...E863C4A573%7D&;siteid=mktw
TOKYO (CBS.MW) - The dollar slipped further against the euro and yen on Thursday in Asia, amid growing speculation that nothing will emerge from this weekend's Group of 20 finance meeting to put a floor under the greenback.
The dollar was at 103.83 yen in Asia trade, compared with 104.04 yen late Wednesday in the United States.
The euro tested new record highs, trading at $1.3058, compared with $1.3036 in the United States late Wednesday.
The Group of 20 financial policy makers will gather Friday and Saturday. Foreign exchange rates are expected to be one of the topics discussed at the meetings in Berlin.
But Tokyo strategists said top finance officials are likely to refrain from addressing the dollar in its joint statement.
"G-20 has historically not dealt squarely with the currencies in its communiqué," said Masaki Fukui, vice president of forex division at Mizuho Corporate Bank in Tokyo.
Finance Minister Sadakazu Tanigaki uttered the ministry's usual mantra to reporters Thursday, saying that Japan will take action on unusual currency moves.
When asked about the dollar's fall to below the 104 yen level, Tanigaki said Japan is watching currency moves `"closely," and added, "As I've said before, we will do it when moves are unusual, and there's no change in that" policy, according to Bloomberg News.
Japan's chief cabinet secretary Hiroyuki Hosoda said Thursday that Japan doesn't see a need to intervene in the currency markets to prop up the dollar at around the 104 yen, according to Kyodo News.
The dollar's further drop showed that many investors were betting that the intervention card would remain unplayed.
"Many participants feel that it will be difficult for Japan to intervene in the currency market as European officials are not in a mood to intervene despite voicing caution against the weaker dollar," Fukui said.
On Thursday, the Bank of Japan's nine-member policy board unanimously agreed to leave its monetary policy unchanged, as expected. The central bank also downgraded its assessment of Japan's economy, shadowing the Cabinet Office's move earlier this week.
U.S. trade Wednesday
The dollar dropped to a record low against the euro Wednesday as investors grew doubtful that the weekend meeting would a weekend meeting of top finance officials would produce concerted policy to slow the greenback's dive.
The euro was valued as much as $1.3047 during European trading hours, its richest since the 1999 launch of the shared currency. The peak was achieved as initial dollar selling took out significant options barriers that had been protecting lofty euro and yen levels.
The U.S. currency got little help from mostly dollar-positive U.S. economic data issued Wednesday.
The dollar was off the record low, but remained down 0.6 percent against Europe's shared currency in late North American trading; one euro would buy $1.3036.
The dollar fell 0.3 percent against its British counterpart and was trading at four-month lows, with one pound worth $1.8593. The greenback slid 1.1 percent to 1.1623 Swiss francs, after touching an 8 1/2-year low.
U.S. Treasury Secretary John Snow, traveling in Europe, reiterated Wednesday that a "strong dollar" policy is in the interest of the United States, but analysts said that record U.S. budget and trade deficits are keeping pressure on the dollar.
Snow also reiterated his comment that the market, not government officials, should set currency rates, which bolstered the view in some corners that a coordinated intervention to stem the dollar's decline is unlikely."
Gambler!
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